The Motivation And Performance Of Central Enterprises' M&A On Real Estate Business

With the rapid urbanization of China,China's real estate industry has maintained a good momentum of development in the past two decades,which has contributed a lot to China's economic growth.The real estate industry,which is featured with long industrial chain,wide scope,large capital demand and close correlation with people's life,certainly has a great influence on China's economy and even the whole society.At present,m&a happens frequently in China's real estate industry.At the same time,with the policy tendency of promoting reorganization and improving industrial centralization,the central enterprises' real estate business also starts a wave of m&a,which received extensive attention of the industry and capital market.Under the background of the real estate business integration pushed forward by Sasac,this typical case study as well as its experience is of great guiding significance to deal with the subsequent similar case.This paper is based on the lower-growth environment of real estate industry,and focus on the central enterprises' real estate business with a case study of China Overseas' s acquisition.Also,this paper comprehensively analyzed the m&a motivation of this case under the background of the real estate industry in our country at present,using the method of event study and the financial research as well as the non-financial index to study the m&a performance of this case.By the detailed analysis of such a typical case,with its experience and lessons,the author hopes to provide valuable enlightenment to the real estate business integration of central enterprises in the future.